Bermuda should be concerned that it appears to be building an unenviable reputation as a place to avoid amongst big business hotel investors and developers, according to hotelier and Shadow Tourism Minister David Dodwell.

An American hotel financier who was involved in the consortium aiming to bring a Four Seasons Hotel to St. George?s, only to see two years of negotiations end without success in December, only days ago warned that the Island is frightening off the ?handful of lenders? with the financial clout to bring quality hotels to Bermuda.

Florida-based Bill Steckroth was one of the backers involved in the St. George?s Renaissance Consortium, which had its negotiations abruptly ended without public explanation by Tourism Minister Dr. Ewart Brown in what was a virtual repeat of an experience he went through trying unsuccessfully to bring a Regent Hotel to Hamilton in 2003.

Now Mr. Dodwell has backed up the American?s warning, pointing out that Caribbean islands including the Turks and Caicos, Cayman and St. Lucia are all attracting luxury hotel developments while Bermuda has yet to sign on the dotted line after numerous aborted negotiations.

Responding to Mr. Steckroth?s concerns at the weekend, Dr Brown said there were ?plenty of others (developers) lining up to come here?.

But that?s not the case, according to Mr. Dodwell.

He said: ?We have not had new development in Bermuda for the entire time of the Progressive Labour Party Government. There have been two deals on the table regarding Morgan?s Point and nothing has happened and that?s a classic spot with completely open land.

?There aren?t new deals and the reason is simple. You just have to go abroad and speak to the equity and debt markets and discover our reputation is not good.

?I?m embarrassed by that. As a Bermudian and a hotelier I don?t like my industry to have that image, but it is a fact.

?We have got to do what we can to correct it, and Bermudians need to know this. They can?t be told ?don?t worry, it?s okay, don?t worry about Mr Steckroth because there are lots of people lining up behind? ? not true.

?There are people, but they are all worried about where Bermuda is going from a development and investment standpoint. We don?t have a good record.?

Mr. Dodwell said the Turks and Caicos Islands are currently having Ritz-Carlton and Aman Resorts built and Fairmont Hotels has recently announced a project there, while a Ritz has opened in Cayman and a Mandarin Hotel is in the pipeline and St. Lucia has attracted a Western Hotel and a Starwood Hotel.

He said: ?It?s not like it?s not happening anywhere else, it is happening. But it?s not happening here. My concern is that, as a country, we really struggle to close a deal and that?s what happens, that message goes out there.?

The continuing saga of the former Club Med resort that overlooks St. George?s worries Mr. Dodwell. After two years of negotiations and a claim of $2 million being spent on plans and preparations for a projected $220 million deal, the St. George?s Renaissance Consortium, led by the Canada-based Quorum group, was replaced as the favoured developer by an as yet unnamed developer two weeks ago.

?I?m very worried,? Mr. Dodwell said. ?There has been a group that has worked for years and spent, we?re told, $2 million and they had signed up Four Seasons Hotels. I know that for a fact. They had raised the money. I?m satisfied from knowing some of the players that the money was there.

?It provided a wonderful array of product for Bermuda. The cultural arts centre that wrapped itself around the two forts. I have seen some of the plans, it did a beautiful job taking in the historical side, so it was not just a hotel, it was a cultural arts side.

?It had a wonderful linkage with St. George?s. I know the people of St. George?s liked the project and it had what is now very typical for hotels the mix-use development, hotel rooms, condominiums with some fractional development.

?I?m worried. The result is not good for two reasons. For one it is terribly bad for St. George?s ? another delay. They have waited years for this to happen.

?I do know that the exclusivity periods granted to the Quorum group had been extended but it is a very complex project, it?s an existing hotel on Government lease land. It?s a complex project and what Bermuda has done in essence is walk away from it.?

Mr. Dodwell added: ?It?s not good for St. George?s and it sends a terribly bad message of how Bermuda treats investors and developers. We already have a cloud over our heads anyway and the Government as a whole does want to acknowledge it.

?I?m aware of that whole situation and Mr. Steckroth was not a happy man. Here is an investor with first-hand experience and what he is saying is what everyone is saying abroad.?

Starting the whole Planning process for the Club Med site is going to add more delay to the East End having its solution to the resort site which has lain empty for nearly 20 years, said Mr. Dodwell.

?It?s going to take another long period of time to start up. We don?t know anything about what is going on, so if you don?t know anything you have to assume that it?s almost back to the drawing board,? he said.

The UBP Shadow Minister said he shared Dr. Brown?s spirit for taking Bermuda?s tourism and hotel business forward, as outlined in a presentation given by the Deputy Premier to tourism sector shareholders last Thursday, but he questioned why it has taken the Government eight years to start making Bermuda a less cumbersome place for developers to do business.